HEALTH INSURANCE SECTOR OF INDIA

S.Chaitanya kumar -10M010 Phanindra -10M031 Raghunath reddy -10M040

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History
In 1818 ,Anita Bhavsar (Kolkata)

In 1870 BMLAS
In 1906 the NIC Ltd In 1912 the Life Insurance Companies Act and the Provident Fund Act Nationalized ordinance on 19th jan 1956 Formation of LIC In 1972 GIB bill was passed

On 1st Jan 1973 , 107 insurers amalgamated and grouped into four companies NIC Ltd NIAC Ltd OIC Ltd UIIC Ltd LIC had monopoly till late 90s

The Indian Health Scenario

Until 1999, there were not any private insurance companies in India IRDA Act in 1999 Currently, a US$41 billion industry World's fifth largest life insurance market Growing at a rapid pace of 32-34% annually

Only two million people have health insurance

USA about 75 % of the total population are covered

 Total Expenditure on health in India is nearly 6% of the entire GDP

Out of this 1.5% is in the Govt. Sector and 4.7% in private sector
Government spending is less than 25% against the

average spending of 30-40 % in other developing countries. Indian health insurance industry stands at INR 5,125 crores Health Insurance industry in India is one of the fastest growing segments.
Source: Asia Insurance review

23 firms
Aegon Religare Life Insurance Aviva Life Insurance Bajaj Allianz Life Insurance Bharti Axa Life Insurance Birla Sun Life Insurance Canara HSBC OBC Life Insurance DLF Pramerica Life Insurance Future Generali Life Insurance HDFC Standard Life Insurance ICICI Prudential Life Insurance IDBI Federal Life Insurance IndiaFirst Life Insurance ING Vysya Life Insurance Kotak Mahindra Old Mutual Life Insurance

Life Insurance Corporation of India Max New York Life Insurance Met Life India Life Insurance Reliance Life Insurance Sahara India Life Insurance SBI Life Insurance Shriram Life Insurance Star Union Daiichi Life Insurance TATA AIG Life Insurance

Probable Reasons ?? Life Expectancy Indias Young Population Benefits of Globalization

Market Size & Forecasts

& S i z e

Source: Asia Insurance review

F o r

M a r k e t

Role of IRDA
Interest and secure of policyholder Orderly growth of industry Standards Monitoring Settlements Transparency

Taking action
Self regulation

Role of TPA
Cashless medical service facilitation Claim processing and reimbursement, Cost containment services for Insurance Companies

Online assistance to Insured

Enrollment of data / insured details and ID Card

issuance

Health Insurance Focus Areas

Health Insurance - potential to become a Rs.25000 crores industry by 2012. No. of Elderly People in the Developing World will TRIPLE in 25yrs. (WHO) In India, the no. of people above 60 yrs is about 8% today, with that no. expected to hit 21% by 2025. (Asia Insurance Review)
Source: WHO report , Asia Insurance review

Recommendations
Transparency in product features Flexibility in product choices Effective CRM Awareness on need for HI Free campaigns on health care

Speediness in work and processing

Conclusion
The potentiality in HI industry is hopeful ,

corporate should make their efforts as useful to policyholder as well as for the company.
In India at present no Pan-India Model of HI. All different forms need to be explored.

Reference
http://en.wikipedia.org/wiki/Insurance#Health_insura nce http://www.who.int/whr/en/ http://www.asiainsurancereview.com/ http://en.wikipedia.org/wiki/India_Vision_2020